Acimga report: back to pre-Covid levels within three years
Sales suffered a double-digit decline in 2020, but the results for the first half of 2021 are already showing a strong recovery, with order intake climbing by 67.1% and revenue up 21.4%. The sector is expected to return to pre-Covid levels in 2023.
The Italian graphic, paper and converting machinery industry reported a sharp contraction in all its indicators in 2020 according to a report drawn up by Acimga, the Confindustria-affiliated association representing what is one of the world’s leading sectors. In the first year of the pandemic, sector companies reported a turnover of €2.4 billion, down 15.8% with respect to 2019. However, this compares with an average decline of 27% across the Italian manufacturing machinery industry as a whole according to Federmacchine (national federation of capital goods manufacturers). Domestic consumption contracted by 14.7% to €1.4 billion and investments fell by 24.1%, whereas employment saw a much more modest decline (-1.2%) due to the redundancy freeze and the willingness of companies to retain their workforce even during difficult times.
Imports and exports struggling
Exports also fell (-18%) to €1.4 billion, around 60% of total turnover. However, this decline has not affected the Italian graphic, paper and converting machinery industry’s ranking as the world’s third largest exporter with a 10% share of global export sales. EU countries continue to be the most important market with 40% of sales, followed by North America (21%) and non-EU European countries (11%). The biggest downturn was recorded in the EU, where exports (€555 million in 2020) fell by an average of 15% compared to 2019, ranging from -9% in France to -43% in Spain. In the United States, the leading destination country with a market share of 16%, sales fell by 17%, whereas in the more marginal regions such as South America, Africa and the Middle East, volumes dropped by between 20% and 43% with respect to the previous year’s levels. In general, out of the Italian industry’s top twenty countries of export in terms of market share, only six recorded a growth in exports: Turkey (+12%), China (+2.5%), UK (+31.8%), Canada (+60.9%), Egypt (+59.7%) and Portugal (+64.7%).
Imports also fell to €437.4 million, a decline of 19.6% on 2019.
Trade balance declines but remains in positive territory
The sector’s trade balance stood at +€950 million, around €200 million lower than in 2019, as a result of the negative trend that affected almost all machine segments. Print form preparation machinery was the only segment that showed a slight improvement, while the trade balance for printing machinery fell by more than €100 million and converting machinery recorded a negative trade balance (-€4.1 million) for the first time in many years. Looking at individual countries, Italy maintains a trade surplus with the vast majority of the top ten countries ranked in terms of total trade value. Trade with Germany, Italy’s largest trading partner, is an exception with a deficit of €89.3 million in 2020 (14.8% less than in 2019). The United States is Italy’s second largest trading partner with a trade surplus of €215 million (more than €20 less than in 2019). Italy likewise maintains a positive trade balance with the next countries in the rankings: France +€28.8 million, China +€23.3 million. These are followed by other countries with which Italy has a strong trade surplus: Turkey +€66.7 million (up by €10 million), the UK +€41.6 million and Spain +€45.8 million. The only other country among the top ten trading partners with which Italy had a negative trade balance in 2020 was the Netherlands, which exported €4 million more than it imported.
“The sector report clearly reveals the difficulties experienced during an exceptional year dominated by the Covid-19 pandemic,” says Andrea Briganti, general manager of Acimga. “Exports fell across all production sectors, and we have to go back as far as 2011 to find lower values. It should be stressed, however, that the surplus achieved by the Italian printing, paper, converting and related machinery industry has contributed to the positive trade balance (+€19.8 billion) of the capital goods sector as a whole, which in turn accounts for a far from negligible share of Italy’s economy with total sales of close to €40 billion (2.4% of national GDP) and exports of €27 billion (5.6% of the Italian total).”
“This sector remains an internationally recognised centre of excellence and model of Italian industry,” continues Briganti. “Our export monitor is predicting a growth scenario for the three-year period 2021-2023, with the largest contributions coming from sales in the United States, Germany, Turkey, Poland, France and Spain. It will take three years to return to pre-Covid levels. The figures for the first half of 2021 already confirm a strong recovery for the entire industry. In the first six months of the current year, order intake grew by 67.1% and turnover increased by 21.4% to a value of €1.4 billion.”
